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United Kingdom
United Kingdom
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CASE STUDY
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Book runner meaning
Published by a LexisNexis Banking & Finance expert
What does Book runner mean?
In practice, the book runner is the investment bank or lender that leads the syndication and distribution of a new loan or securities offering. It builds and manages the order book, advises on structure and pricing, coordinates marketing and disclosure, and allocates commitments or securities to syndicate members and investors. The term is a market expression, not defined by legislation or case law, and the role and duties are governed by contract (for example, a mandate/commitment letter, LMA-style facility agreement, and an underwriting or placing agreement).
In loan transactions, the book runner (often also the mandated lead arranger) prepares the information memorandum, invites and manages lender commitments, oversees primary allocations and fee splits, and may underwrite the facility before sell-down.
In equity and debt capital markets, one or more book runners (joint or global) run the order book, negotiate and manage the underwriting, and allocate securities at pricing. Any stabilisation is undertaken only if a stabilising manager is appointed.
Usage and legal effect are broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland, subject to local regulatory rules (for example, FCA and UK Prospectus Regulation in the UK; Central Bank of Ireland and EU Prospectus Regulation in Ireland).
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View the related Practice Notes about Book runner
PRACTICE NOTES
UK Banking, Finance, Capital Markets, Derivatives and Insolvency Law Glossary including Islamic finance
Banking & Finance glossary A Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) The foremost Islamic, international, autonomous, independent, not-for-profit corporate body that develops and issues accounting, auditing, governance, ethics and Shari’ah benchmarks and standards for Islamic Financial Institutions (IFIs) and the wider Islamic finance sector. Founded in Bahrain in 1991, it is backed by a number of institutional members across more than 45 countries, including central banks and regulatory authorities, financial institutions, accounting and auditing practices, and legal firms. Its pronouncements are currently applied by leading Islamic financial institutions across the world and have advanced a progressive and gradual harmonisation of global Islamic finance practice. It also delivers professional qualification programmes—notably Certified Islamic Professional Accountant (CIPA), Certified Shari’ah Adviser and Auditor (CSAA), and the corporate compliance programme—in efforts to strengthen the industry’s human capital and governance frameworks. For further details, see Practice Note: Key participants in the Islamic finance industry—Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Acceleration Acceleration is the formal action...
22 May
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